LVMH has given some
hopes to the luxury industry after posting better-than-expected results
during the first quarter. The French group reported a 13 percent rise on an
organic basis, an increase that lifted the stock…and the market’s spirits.

“We had a good start to the year and we expect these good trends to
continue,” finance chief Jean-Jacques Guiony told an analyst conference
call. Market experts such as Rogerio Fujimori, analyst at RBC Europe,
concur: “This is a remarkable start to the year for LVMH, with broad-based
market share gains in a buoyant environment for luxury goods,” said
Fujimori in a note to clients.

Shares in LVMH touched record highs in early trading on the back of the
news.

Chinese consumer’s comeback and digital push, key to LVMH’s Q1
growth

'Explosive' sales make China 'great again' for Louis Vuitton after
consolidation to stem downturn, acknowledged the group’s CEO. In fact, many
brands of the LVMH family such as Louis Vuitton and Givenchy have seen
record sales powered by Chinese consumers, who seem to have recovered from
a 2-year slowdown.

Analysts had estimated a rise of 8.5 percent, projecting growth to taper
off after a 12 percent jump last year. While China’s economic growth is
expected to slow to 6.5 percent in 2018 compared with 6.9 percent last
year, data analysed by Bloomberg reveal that demand for luxury products
remains high in the Asian country.

Another stream of growth for LVMh is their digital channel: its
e-commerce proposition, as well as a renewed product range, are resonating
well with younger, prosperous customers.

LVMH highlighted its digital efforts, such as its sponsorship for a
start-up accelerator that aims to encourage entrepreneurs developing new
technologies and services for the luxury industry.

“Digital allows us to reach the client more quickly and directly,” says
Bernard Arnault, LVMH’s chairman and France’s richest man, speaking at
Monday’s inauguration ceremony for the group’s startups accelerator.
“Innovation and creativity are fundamental values for LVMH.”